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Pin to quick picksJubilee Metals Share News (JLP)

Share Price Information for Jubilee Metals (JLP)

London Stock Exchange
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Share Price: 7.60
Bid: 7.50
Ask: 7.70
Change: 0.00 (0.00%)
Spread: 0.20 (2.667%)
Open: 7.60
High: 7.60
Low: 7.50
Prev. Close: 7.60
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Jubilee Platinum rises as South African production improves

Mon, 09th Mar 2015 11:55

Shares in Jubilee Platinum rose on Monday following news that its Middelburg operations enjoyed an increase in their gross profit margin during the last quarter of 2014 despite a shortened production period.The South African project increased its revenues by 10.12% to £1.34m as production rose 12% to 2,282 tonnes from 2,031 during the quarter before.However, the project suffered from a shortened production period in December because of early closures at its key clients.Jubilee saw gross margins at Middleburg improve to 44%, from 39%, thanks to improvements in the amount of power used per tonne of metal produced.The company is in discussion with the power utility "for both the increase in the power sales from the Company's power plant as well as extending its current short term power purchase agreement with the Utility to a minimum of 3 years with the option to extend this period to five years." Negotiations are expected to be completed by April 2015.Jubilee Platinum also said it expects its Hernic and ASA platinum surface processing projects to be fully operational by 2016 and have "the potential of significantly transforming Jubilee into a low cost platinum producer from surface operations underpinned by the Tjate platinum exploration project".Chief executive Leon Coetzer said: "The targeted increased power sales, together with the further improved smelter operations, are targeted areas to further enhance the operations earnings."Finally, a request by the Department of Mineral Resources of a financial guarantee in support of the rehabilitation of its Tjate platinum project should facilitate the sale of the Quartzhill segment of Tjate to Anglo Platinum.Shares were up 4.52% to 1.52p on Monday at 11:52.
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